Nearly all Fortune 100 companies have board retirement-age policies in place, with most companies setting the retirement age at 72. Four of these companies have upped their retirement age since last year; none have lowered it.
Even when retirement-age policies are in place, some boards may choose to waive them in cases where they feel doing so is warranted. Indeed, nearly half of the Fortune 100 companies that have board retirement-age policies make explicit that the policy may be waived under certain circumstances.
Still, it is rare for directors to serve on the board past the set retirement age. Only 2% of Fortune 100 directors are serving on boards past a designated retirement age. In half of those cases, the companies explain in the proxy statement the board’s reasoning for reappointing those directors. Around 8% of Fortune 100 directors are age 72 or older.
Among the Fortune 100 companies with retirement-age policies, 19% of directorships are held by individuals within five years of reaching the board’s designated retirement age.